Sebi's higher float proposal for IBC firms could run into hurdles

Several legal experts plan to highlight the challenges in implementing all three options recommended by the regulator

The Securities and Exchange Board of India’s (Sebi’s) proposal to entail higher free-float for companies relisting after insolvency proceedings may run into implementation hurdles. Several legal experts plan to highlight the challenges in implementing all the three options recommended by Sebi in a discussion paper floated by it last week.

In the discussion paper —Recalibration of threshold for Minimum Public Shareholding (MPS) norms, enhanced disclosures in Corporate Insolvency Resolution Process (CIRP) cases — the market regulator has proposed that companies should achieve at least 10 per cent public shareholding within six months of re-listing. Currently, those relisting after CIRP are given